Penske Automotive to Acquire Wiseman Company

TL;DR

Penske buying Wiseman Co. in SF Bay Area - big expansion!

AI Summary

Penske Automotive Group, Inc. announced on June 19, 2024, that it has entered into a definitive agreement to acquire The Wiseman Company, a prominent automotive retailer. This acquisition is expected to significantly expand Penske's presence in the San Francisco Bay Area, adding five new dealerships and representing a substantial growth opportunity for the company.

Why It Matters

This acquisition allows Penske Automotive Group to significantly expand its market share in a key region, potentially leading to increased revenue and profitability.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks related to integration, market reception, and financial performance.

Key Numbers

• 5 — Dealerships (Number of dealerships to be added by the acquisition.)

Key Players & Entities

• Penske Automotive Group, Inc. (company) — Registrant
• The Wiseman Company (company) — Acquisition Target
• June 19, 2024 (date) — Date of Agreement
• San Francisco Bay Area (location) — Geographic Expansion Area

FAQ

Key Financial Figures

• $0.0001 — istered Voting Common Stock, par value $0.0001 per share PAG New York Stock Exchange

Filing Documents

• pag-20240619.htm (8-K) — 30KB
• 0001019849-24-000089.txt ( ) — 153KB
• pag-20240619.xsd (EX-101.SCH) — 2KB
• pag-20240619_lab.xml (EX-101.LAB) — 21KB
• pag-20240619_pre.xml (EX-101.PRE) — 12KB
• pag-20240619_htm.xml (XML) — 3KB

01 Other Items

Item 8.01 Other Items. On June 19, 2024, we became aware that CDK Global, LLC ("CDK"), a provider of dealer management software systems to retail automotive and commercial truck dealerships, was experiencing a cybersecurity incident and its systems were not operational. As of the filing of this Current Report, many of CDK's systems remain inoperable. We do not utilize CDK's dealer management system in our U.S. or international automotive dealership operations. Our Premier Truck Group business utilizes CDK's dealer management system which has been disrupted. We immediately took precautionary containment steps to protect our systems and commenced an investigation of the incident, which efforts are ongoing. Premier Truck Group has implemented its business continuity response plans and continues to operate at all locations through manual or alternate processes developed to respond to such incidents. The commercial truck dealership business has lower unit volumes than the automotive dealership business and principally serves business customers. Premier Truck Group, a heavy- and medium-duty truck dealership group offering primarily Freightliner and Western Star trucks (both Daimler brands), has locations across eleven U.S. states and the Canadian provinces of Ontario and Manitoba. PTG operates 48 locations selling new and/or used trucks, performing service and parts operations, and offering collision repair services . Caution Concerning Forward Looking Statements Statements in this Current Report on Form 8-K may involve forward-looking statements. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, our ability to mitigate the disruption caused by the CDK cybersecurity incident, those related to macro-economic, geo-political and industry conditions and events, including their impact on new and used vehicle sales, the availability of consumer credit, changes in cons

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Penske Automotive Group, Inc. June 21, 2024 By: /s/ Shane M. Spradlin Name: Shane M. Spradlin Title: Executive Vice President